PT Bank Central Asia Tbk (IDX: BBCA) announced the acquisition planned of local lender, PT Rabobank International Indonesia with worth of Rp799 billion (US$57.07 million, the company announced on Monday (06/08)

JAKARTA (TheInsiderStories)PT Bank Central Asia Tbk (IDX: BBCA) announced the acquisition planned of local lender, PT Rabobank International Indonesia with worth of Rp799 billion (US$57.07 million, the company announced on Monday (06/08). One of the largest bank in the country is scheduled to signed the deal on September 2020 after obtaining the approval from the regulator.

Based on the announcement, the acquisition will be made directly by Bank Central Asia and its leasing unit, PT BCA Finance. The bank will later have 3.72 million shares or representing 99.99 percent and one share for its subsidiaru.

It said, the final acquisition value will refer to Rabobank‘ equity value adjusted at the time of the acquisition. The lender will use internal cash to finance the acquisition planned.

Last year, BBCA bought Rabobank Indonesia shares from Cooperative Rabobank UA, PT Aditirta Suryasentosa, PT Antarindo Optima, PT Antariksabuana Citanagara and PT Mitra Usaha Kencana Sejati. According to the president director, Jahja Setiaatmadja, the acquisition is one of the company’ business expansion strategies.

The lender will merge Rabobank Indonesia with one of their subsidiaries, yet it had not yet determined the subsidiary. While, Rabobank has stopped its operations in Indonesia from April 2019 to June 2020. This was done after 29 years of operation in Indonesia.

President Director of Rabobank Indonesia Jos Luhukay said, the parent stopped operations in Indonesia because the company concentrated on supply chains in the food and agriculture sector. This also resulted in the stopping of Rabobank’ business in Poland, Ireland, and North America. He  explained, the closure of Rabobank Indonesia was entirely a decision of the Rabobank Group‘ strategy and was not related to Indonesia’ economic conditions.

Bank Central Asia has subsidiary entities engaged in car financing, motorcycle financing, general insurance, life insurance, banking, Islamic banking, securities, remittance and venture capital investment. The lender’ large customer base provides potential for the business development of subsidiaries through cross selling, and conversely the business of subsidiaries will strengthen customer relationships.

US$1=Rp14,000

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